On new installs it does force you. I had to do it today (Windows 10). There are workaround such as attempting to log into a banned account, or other weird hacks involving disconnecting the internet and know the right combinations of hidden menus to navigate.
I don’t think it’s literally a search and replace but a part of the prompt that is hidden from the user and inserted either before or after the user’s prompt. Something like [all humans, unless stated otherwise, should be ethnically ambiguous]. Then when generating it’s got confused and taken it as he should be named ethnically ambiguous.